The idea here to choose the tax rate with the most favorable tax consequences.

You cannot exchange a single-family house for a piece of expensive farm machinery. Currently, the federal tax rate is 15 percent of the profit that has been made. The idea here to choose the tax rate with the most favorable tax consequences. Wood, fire, earth, metal and water must be balanced to create a happy, prosperous home. Thus, a single-family house can be exchanged for a farm; an office building for a vacant lot.

Agricultural land tends to return a low percentage of its market value.